The Scottish Government’s policy on the remuneration of senior appointments: salary, pay range, annual increase, bonus and other non-salary rewards, etc. of Chief Executives and; the daily fee rates and any pension arrangements, etc. of Chairs and Members of a wide range of Scottish public bodies.

Contents

1. INTRODUCTION What is the Scottish Government Public Sector Pay Policy for Senior Appointments? Who is covered by the policy? Who is not covered by this policy? When is approval required? Who is involved in the process? What do public bodies / Sponsor Teams need to provide? Who should you contact for assistance? Where should you send your proposals? When should proposals be submitted for approval?

2. STRATEGIC AIMS AND OBJECTIVES What are the strategic aims of Public Sector Pay Policy in Scotland? What are the objectives of the Public Sector Pay Policy for Senior Appointments?

3. CHIEF EXECUTIVES: FRAMEWORK Who is it for? What is the Scottish Chief Executive Pay Framework? What needs to be taken into account when determining a Chief Executive's remuneration? What should the business case supporting a Chief Executive's remuneration proposals contain? How do you move a Chief Executive to a pay range? How do you revise an existing pay range / salary following a review? What about temporary Chief Executives? What is the policy on bonuses (non-consolidated performance payments)? What is the policy on non-salary rewards? What do you have to do if you want to vary a new remuneration package after it has been approved? Do you have to seek approval for the terms in a new contract?

4. CHIEF EXECUTIVES: ANNUAL INCREASE 2009-10 What is the annual increase for Chief Executives on spot rates? What is the annual increase for Chief Executives on pay ranges? What are the arrangements for Chief Executives remunerated near, at or above the ceiling? When do the increases apply? What are the arrangements for bonuses (non-consolkidated perfoemnce payments)? What are the arrangements for multi-year proposals?

5. CHIEF EXECUTIVES: APPROVAL What must you do before you submit proposals for approval? When must you submit proposals for approval? How will remuneration proposals be rated? How is the Scottish Government going to assess remuneration proposals? How is the Scottish Government going to assess any bonus (non-consolidated performance payment) element? Who is going to approve remuneration proposals? How long should the process take? What might happen if you exceed the approved increases?

6. CHAIRS AND MEMBERS: FRAMEWORK Who is it for? What is the background to the policy for Chairs and Members? What is a daily fee and what is it for? What about fixed salary elements? What is the Daily Fee Framework? What do you need to do to determine the daily fee of a Chair or Member of a public body? What should a business case contain? What do you do if differences in the daily fee rates between Members arise? What about allowances and other expenses? What about offering a pension? What about other tax matters?

8. CHAIRS AND MEMBERS: APPROVAL What must you do before you submit your proposals? When must you submit proposals for approval? How is the Scottish Government going to assess your proposals? Who is going to approve the proposals? How long should the process take? What might happen if you exceed the approved increases?

9. GLOSSARY AND ABBREVIATIONS Glossary Commonly used abbreviations in dialogue between public bodies / Sponsor Teams and the Finance Pay Policy team